NVIDIA has released a video showing off next gen hair. No seriously.
According to the description, "NVIDIA HairWorks enables users to simulate and render fur/hair to provide a truly interactive game experience. The simulation/rendering currently requires a DX11 capable GPU."
One of the games proudly shown off in the video is The Witcher 3, which according to Eurogamer has a wolf which features 200,000 strands of fur being simulated, with a secondary motion of fur that "brings the wolf to life". Apparently, artists have control over waviness, clumping and density.
In a previous interview, executive producer John Mamais said that "Our ultra is pretty much the peak in games. At least we hope it is. The stuff we're doing is going to look really amazing."
Based on the video below he may be right, although you'll need a rather expensive machine to get it to look that good.